Salazar: $2.2 Billion to States, Tribes from Energy Production Revenues in Fiscal Year 2010

Land Conservation, Water Development, Historic Preservation Funds also Receive Federal Energy Production Funding

11/04/2010

WASHINGTON, DC – The Department of the Interior disbursed more than $1.8 billion to 34 states and more than $407 million to 34 American Indian Tribes and 30,000 individual Indian mineral owners as part of their share of receipts from onshore and offshore energy production during Fiscal Year 2010, Secretary Ken Salazar announced today. The Land and Water Conservation Fund, Reclamation Fund, and the Historic Preservation Fund also shared $2.4 billion of these federal energy revenues.

“Royalties, rents and bonuses from energy production on U.S. public lands provide a crucial revenue stream for state and American Indian Tribal budgets to support a number of priorities, particularly in light of today’s economic conditions,” Secretary Salazar said.
“The federal disbursements also support critical conservation initiatives across the nation, water supply and distribution projects in the West, infrastructure development and historic preservation.”

The disbursements represent the states’ cumulative share of revenues collected from mineral production on Federal lands located within their borders, and from Federal offshore oil and gas tracts adjacent to their shores.

“Many states use this funding to support K-12 education, including salaries for teachers,” said Rhea Suh, Interior’s Assistant Secretary for Policy, Management and Budget. “Others apply the funds to road and infrastructure improvements and capital projects, or return the revenues to the local counties that might be impacted by the energy production on their lands.”

Revenues from American Indian tribal lands are paid to tribal governments and individual Indian land owners. “Some tribes distribute the revenues among all tribal members,” Suh noted, “or apply the revenues to healthcare programs, roads, education, nutrition and senior centers, elder programs, public safety, housing and youth programs.” Revenues received by individual Indian mineral owners are used to support their families and often serve as a major source of primary income, she added.

In total, $9.1 billion was disbursed by Interior’s Office of Natural Resources Revenue in FY 2010. In addition to disbursements to states, American Indians, and the U.S. Treasury, $899 million was contributed to the Land & Water Conservation Fund; $1.3 billion went to the Reclamation Fund for water projects; and $150 million to the Historic Preservation Fund. The U.S. Treasury received about $4.5 billion.

The Office of Natural Resources Revenue (ONRR) is the Federal office responsible for collecting, auditing and disbursing revenues associated with mineral leases on Federal and American Indian lands, and in the Outer Continental Shelf. Disbursements are made on a monthly basis from royalties, rents and bonuses collected by ONRR.